P&A Providers & Administrators
MenuMENU
SearchSEARCH

FCA Will Pay $700M to Settle Diesel Dispute

Fiat Chrysler Automobiles has agreed to pay at least $311 million in penalties and $280 million to settle lawsuits brought by the U.S. Department of Justice, the State of California, and Jeep and Ram buyers over 104,000 diesel engines regulators say illegally emitted excess emissions.

Tariq Kamal
Tariq KamalFormer Associate Publisher
Read Tariq's Posts
January 10, 2019
FCA Will Pay $700M to Settle Diesel Dispute

Regulators say the diesel engines in more 100,000 Jeep Grand Cherokee and Ram 1500 units sold in the U.S. in the 2014–’16 model-years used illegal software to cheat emissions standards.

Photo courtesy FCA US LLC

2 min to read


WASHINGTON — Fiat Chrysler Automobiles and a German auto supplier have agreed to settle claims and lawsuits concerning 3.0-liter V-6 diesel engines installed in 104,000 Jeep Grand Cherokee EcoBoost and Ram 1500 EcoBoost models sold in the U.S. in the 2014–’16 model-years.

The U.S. Department of Justice and California regulators claimed software containing illegal auxiliary controls allowed the engines to emit “substantially” greater than permitted levels of nitrogen oxide. FCA’s total liability could surpass $700 million dollars, including but not limited to:

Ad Loading...
  • $311 million in civil penalties to U.S. and California regulators.

  • $280 million to settle a lawsuit by owners, averaging out to about $2,800 each.

  • $105 million to fund ongoing state-level investigations and in compensation for excess emissions already released.

Another $103.5 million will be paid by German engine component supplier Robert Bosch GmbH will pay $103.5 million to regulators in 47 U.S. states and another $27.5 to settle its part of the owners’ lawsuit, according to the report.

FCA and Bosch have denied any wrongdoing. The factory updated its software and had its U.S.-sold diesel powerplants recertified in 2017.

FCA and other factories selling diesels in the United States have been under intense scrutiny since the Volkswagen emissions scandal erupted in 2015. VW has paid fines totaling more than $25 billion to U.S. regulators, car buyers, and dealers to settle claims involving at least 500,000 vehicles. In January 2018, Mercedes-Benz officially withdrew its diesels from the U.S., leaving roughly a dozen diesel-powered cars and trucks on the market heading into the 2019-MY.

This story has been updated with confirmed dollar amounts. 

Topics:Industry

Originally posted on Auto Dealer Today

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →